U.S. publicly traded company VivoPower plans to invest $300 million to acquire shares of Ripple Labs

According to CoinDesk, Nasdaq-listed VivoPower (stock code: VVPR) is expanding its Ripple-related strategy through a new joint venture aimed at acquiring hundreds of millions of dollars worth of shares in Ripple Labs, allowing investors indirect access to nearly $1 billion in underlying XRP assets.

The company announced on Tuesday that its digital asset division, Vivo Federation, has been commissioned by the South Korean asset management firm Lean Ventures to initially procure $300 million worth of Ripple Labs equity. Based on the current XRP price, VivoPower estimates that this equity represents approximately 450 million XRP tokens, valued at about $900 million. However, this structure does not involve a direct purchase of XRP. Instead, Lean Ventures plans to establish a dedicated investment vehicle to hold the Ripple Labs shares acquired by Vivo Federation, targeting institutional investors and qualified individual investors in South Korea.

VivoPower stated that it has received approval from Ripple to purchase the first tranche of preferred shares and is in discussions with existing institutional shareholders for further acquisitions. Under this arrangement, VivoPower will not deploy its own balance sheet funds but will generate returns through management fees and performance sharing. If the initial $300 million mandate is achieved, the company's goal is to realize a net economic return of $75 million within three years.